Is Mining on ASICs Worth It? - Mining Adventure Part 3

Linus Tech Tips ·Linus Tech Tips ·2018-05-06 · 1,884 words · ~9 min read
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0:00 so while it used to be possible to mine
0:04 for bitcoins on your old laptop
0:07 due to the constantly increasing difficulty it's no longer practical on
0:12 mortal computers not even with multiple high performance graphics cards
0:17 so then how do you do it allow me to introduce
0:22 the bitmain antminer s9
0:26 a bare bones computer of sorts except it has no
0:31 display output no way to plug in a keyboard and it only does one thing mine
0:38 sha-256 cryptocurrencies like bitcoin
0:42 oh and we've actually also got an l3
0:45 plus you want to open that one up Jake which does script coins like litecoin
0:50 and a d3 which mines x11 cryptocurrencies like dash
0:55 so the goal today is to find out if these things
1:01 are worth it and no austin that is not trademarked i
1:04 can say it
1:15 so if you've seen part two of mining adventure already you should have a
1:19 pretty good idea of what a fairly efficient GPU mining setup looks like
1:25 but even that is nothing compared to an
1:28 asic miner for example the Radeon hd
1:32 7970 was released in 2012 and mined
1:35 bitcoin at an efficiency of about 4 mega hash per watt so ignoring the few
1:41 companies that never really shipped an end user product in late 2012 avalon
1:47 released the avalon 1 an asic miner that
1:50 did an at the time astonishing
1:54 165 mega hash per watt a huge bump over
1:58 GPU mining so how could they possibly achieve this
2:02 well graphics cards and cpus are designed to
2:07 be able to process a huge range of
2:10 different calculations which is what makes them incredibly useful in our
2:14 everyday devices this versatility is great
2:17 but it limits their ability to do one thing
2:21 really really fast so application
2:24 specific integrated circuits or asics
2:28 these are as the name implies designed
2:31 and purpose built to do just
2:34 one thing and while that might not make sense for your gaming rig for a bitcoin
2:39 miner that only needs to run one specific formula it is a godsend
2:45 at least for the people who own them because of the nature of
2:48 cryptocurrencies the increase in overall
2:52 hashing power in the network that's caused by a massive influx of
2:56 specialized mining hardware is a big part of what made bitcoin's difficulty
3:01 go up even further and i mean way up so when the
3:05 avalon one came out bitcoin difficulty was at around 3 million by the same time
3:11 the following year it was 600 million so if you fast forward to
3:17 2017 there are a bunch of players in the asic
3:20 market including bitmain whose hardware we have with us today inno silicon and
3:26 by call thanks to whom bitcoin difficulty has reached a whopping 2
3:32 trillion so all the folks out there running gpus for mining
3:37 those guys are focused on alt coins like what we showed in part two so options
3:42 like monero z cash and ethereum are all
3:46 popular at this time by the way huge shout out to marshall at
3:51 ogbtc on twitter and francisco over at
3:54 byvm.net who helped hook us up with the antminer s9 the l3 plus and the d3 that
4:01 we're taking a look at today so let's crack the d3 open here not so much for
4:06 the warranty sticker we'll just uh put that
4:09 right there i mean what else would we do with a multi thousand dollar specialized
4:15 computer that's out of stock quite literally everywhere um i mean as a
4:21 general rule machines that does this not slide out ah it was the wrong way dang
4:26 it i called it hold on i'll just go you know we have
4:30 pokey with this there you go as a general rule machines that
4:34 essentially print money are in pretty high demand so unless you've got friends
4:39 in high or low places they're mostly obtained by
4:43 pre-order and the problem with that is that the wait lists can be as long as several
4:48 months meaning that by the time they arrive they might not even be profitable
4:53 anymore and that's a really relevant point here because this d3 miner now
4:58 makes barely five to ten dollars a day
5:01 before electricity costs while drawing a
5:05 massive 1200 watts from the wall by
5:08 default when these things were announced people were buying them left and right with
5:12 dreams of making their money back in a week and then it's just pure profit from
5:16 there on they definitely didn't learn from the
5:20 effects of early asic miners on the bitcoin difficulty curve which naturally
5:25 went way up so now that it's open then let's let's
5:29 have a look at what's actually going on here so the d3 unit has three of these
5:34 hashing boards each containing
5:37 uh hold on so 50
5:41 and i guess it would probably be the same on the other no it's just one side it is just one second oh wow so you
5:45 think that's both sides from both sides wow cool
5:48 so sorry yeah 50 asics they're held in
5:51 place by an aluminum case then which doubles as sort of a wind tunnel with
5:56 these high airflow fans on either side so most of the mass of this thing is
6:02 actually just the glued on heatsinks for each chip so
6:06 if we just plug back in the hashing boards to the
6:09 controller here
6:13 being very careful of course don't worry i got this
6:17 and then connect this wiring to our controller here which by the way see
6:21 this guy right here is a mini Linux computer
6:25 and then we wire up a power supply we got one yeah here we go here's a power
6:29 supply we should be pretty much ready to mine right i think so
6:35 i mean we should probably put this cover back yeah yeah okay maybe finish pouring
6:38 these back in yeah we'll be back in a minute
6:42 okay i know you really like dropping things but it'd be good
6:45 if you didn't drop them i'm not gonna drop them i don't trust you
6:49 so you can actually use a regular computer power supply
6:54 but with how short the supply of those is these days
6:58 in many cases people end up using
7:01 these mining specific ones so the only real
7:05 difference is just that it only outputs 12 volt and then it just has a whack ton
7:10 of 6 pin pci express connectors also because it's not designed for
7:14 consumer use the word on the street there
7:19 is that they are pretty loud
7:23 so you need a network connection because your miner
7:27 needs to be able to find and submit
7:32 any work that it needs to do okay here we go
7:37 that would sound too bad that's not too bad that's fine yeah
7:41 just give it a second don't be fooled my friend it gets worse
7:46 much much worse oh
7:54 oh oh such a great noise
7:58 so um here just like with uh blowing matron from
8:03 one of our recent videos i wouldn't recommend getting any
8:08 bananas or fingers anywhere near these things
8:14 so at this point with all three of them plugged in
8:19 updated and mining at current profitability levels
8:24 we can see the s9 making about 33 bucks a day the l3 plus
8:29 about 50 in a day and the d3 well the
8:32 efficiency is pretty poor as we noted earlier at about nine dollars a day so
8:37 we're gonna come back in a week and see what we've been able to mine
8:44 okay so we're back again it's been about 16
8:49 days since we installed the asics in the
8:53 the empty not to mention not heated room over here
8:57 and we're actually are you pulling up the pool statistics now
9:01 okay cool our s9 has been mining a fork
9:05 of bitcoin known as bitcoin cash and has
9:08 been earning actually over our estimated amount about 30 to 46
9:13 per day after our power is accounted for during
9:17 this period so if profit were to maintain like this
9:21 we'll be able to pay back the s9 at 2500
9:25 in about two and a half months not too shabby
9:28 with that said if you were looking to pick one up for yourself bit main isn't
9:32 even accepting pre-orders as of when we were filming this and we've been seeing
9:36 them priced at over 5000 us dollars on
9:40 the second hand market the l3 plus averaged about 13 a day
9:45 after power giving us around an eight-month roi time
9:49 definitely worse than the former even if you are overpaying leaving us with the
9:53 d3 which Jake actually found a custom
9:56 firmware that allows it to draw 900 watts instead of the stock 1200 watts at
10:01 about the same hash rate so we've been earning an average of seven dollars a
10:05 day after power giving us an roi time of just over seven months that's actually
10:10 better than the l3 plus since it costs less though
10:14 i wouldn't recommend picking up a ton of d3s since x11 miners are nowhere near as
10:19 far into their development as bitcoin and litecoin a6 and as such are likely
10:24 to see big improvements in efficiency as time goes on driving up the difficulty
10:29 curve so then in a nutshell
10:33 at the right pricing an asic miner takes up less space and can yield better roi
10:40 time with less software hassle and no
10:43 construction time compared to GPU mining
10:46 but it comes with higher risk worst case scenario gpus can be resold
10:52 for some fraction of what you paid but since an asic miner has no value outside
10:58 of mining the specific cryptocurrencies it's optimized for when the
11:02 profitability is gone it just becomes an expensive paperweight
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